A real estate agency receives 3.5% commission on the first $100,000 of a sale and 2.25% on the remainder. How much commission is received on the sale of a $450,000 property?
Calculate commission on first $100,000 (Commission 1):
Commission 1 = $100,000 * 0.035
Commission 1 = $3,500
Calculate commission on the remainder (Commission 2):
Commission 2 = 0.025 * ($450,000 - $100,000)
Commission 2 = 0.025 * ($350,000)
Commission 2 = $8,750
Calculate Total Commission:
Total Commission = Commission 1 + Commission 2
Total Commission = $3,500 + $8,750
Total Commission = $12,250
Calculate commission on first $100,000 (Commission 1):
Commission 1 = $100,000 * 0.035
Commission 1 = $3,500
Calculate commission on the remainder (Commission 2):
Commission 2 = 0.025 * ($450,000 - $100,000)
Commission 2 = 0.025 * ($350,000)
Commission 2 = $8,750
Calculate Total Commission:
Total Commission = Commission 1 + Commission 2
Total Commission = $3,500 + $8,750
Total Commission = $12,250